Wilshire Associates has survived another competitive tender, trumping RogersCasey in the interview scoring process to retain the position of CalPERS’ lead general investment consultant, a position it has held since 1983.
The interviews with the investment committee, held this week, were scored for each consultant and combined with previous scores for technical and fee proposals. RogersCasey was leading the overall score, by 315 points to 300, going into the interviews, but Wilshire scored better in the interview process.
CalPERS expanded the scope of services required by its primary pension consultant, including the provision of more strategic advice and better communication between board and staff, when it issued the RFP in December.
The revised scope of services calls for the consultant to provide more strategic perspectives on market trends and potential investment opportunities, facilitate better communication between the board and CalPERS staff, and provide more review and reporting transparency to the board.
There are two new categories under the monikers of special advisor and communications and reporting.
The role of special advisor will be to advise the board, investment committee and staff on investment opportunities and provide independent analysis of the CAlPERS total prtofolio, its programs and investment partners.
It includes advice on new investment vehicles and techniques or major changes in existing practices within the industry, and preparing a comprehensive analysis and recommendation of these activities.
With regard to communications, the new requirement is to provide regular written recommendations, reports and inputs to the board to keep them informed and abreast of pertinent matters relating to the total portfolio.
CalPERS conducted research of best practices in the use of primary pension consultants throughout the investment community, and then staff proposed changes to the services for the primary pension consultant.
Wilshire was hired as the fund’s first consultant in 1983 and has remained its consultant through a number of competitive tenders since that time.